A recent report reveals that over half of private universities in Japan are now operating at a deficit. This situation has emerged amid dwindling student numbers and escalating costs. While a timeline for recovery remains unclear, the universities are exploring a variety of survival strategies, including budget cuts, structural reforms, and partnerships.

In Japan, the issue of financial instability among private universities is generating concern due to the important role these institutions play in providing higher education options beyond national and public universities. There is a societal expectation for these universities to maintain a healthy financial status. However, with Japan's decreasing population leading to shrinking student numbers, these universities are struggling to retain funds and operate efficiently.

Unlike in Japan, private universities in the US and EU generally have multiple sources of funding, including substantial endowments, alumni donations, and research grants, allowing them to weather fluctuations in student enrolments. Moreover, the US and EU have a more balanced population demographic, unlike Japan's aging society with fewer young people.